Which of the Following Is NOT a Condition That Needs

question 8

Multiple Choice

Which of the following is NOT a condition that needs to be satisfied prior to recognising revenue from the rendering of services using the 'percentage of completion' method?

• A) the amount of revenue can be measured reliably
• B) the stage of completion of the transaction can be measured reliably
• C) the costs of the transaction (including future costs) can be measured reliably
• D) the contract is non-cancellable.

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Definitions:

Equilibrium Price

The price in a competitive market at which the quantity demanded and the quantity supplied are equal, there is neither a shortage nor a surplus, and there is no tendency for price to rise or fall.

Relatively Inelastic

Describes a situation where the demand for a good or service changes by a smaller percentage than changes in its price, indicating consumers' less sensitive response to price changes.

Supply

The total amount of a product or service available for purchase at any given price or time.

Coefficient Of Elasticity

A measure used in economics to show how much the quantity demanded or supplied of a good responds to a change in its price or income level.